A crisis can be devastating for any organisation as the reputation and relationships they have strived to build and maintain are put in jeopardy. One of the key factors determining the damage of a crisis is the actions taken within the first day it happens.
This edition of Muse explores the life cycle of a crisis and the significance of the first 24 hours.
The life cycle of a crisis
Every crisis starts with an early warning of something going wrong. It develops over days, weeks, or months until the problem has been effectively addressed, allowing businesses to return to their usual operations.
At different stages of the cycle, the development and handling of a crisis exerts extra pressure on a company and its crisis response team. With online and social media enabling the immediate dissemination of news, an unfortunate incident will be put in the spotlight within a matter of minutes.
The International Public Relations Association wrote that actions taken within the first 24 hours after a crisis strikes can determine the survival of a company.
Why are the first 24 hours so important?
Prompt reactions can help business leaders regain control of the overall narrative and prevent stakeholders’ misconceptions or misinterpretations.
The Public Relations Society of America reported that organisations reacting to a crisis within the first hour are 85% more likely to maintain public confidence. Additionally, The Institute for Public Relations stated that companies with a carefully prepared crisis response plan are 53% more likely to recover within six months.
Pepsi’s immediate response to a backlash against its advertisement is a prime example of proactive crisis management. In 2017, the soft drink giant launched a commercial campaign starring Kendall Jenner offering a Pepsi to police officers as a peace-making gesture.
A PR crisis ensued as it received criticism from the media, celebrities and activists worldwide accusing the company of downplaying violence against citizens of colour and ignoring racial prejudice inherent in policing.
In less than 24 hours, Pepsi halted the entire campaign, published a statement apologising to the audience, and emphasised its effort to convey a message of global unity, peace and understanding.
On the other hand, a slow reaction in the initial phase of a crisis can harm the reputation that a company has strived to build and maintain for years or even decades. Remaining silent only allows a crisis to escalate and inaccurate information to spread as the media and stakeholders, particularly those directly affected, attempt to discover what happened.
Continue reading our next blog to learn some best practices for navigating the first 24 hours of a crisis.